Answer: a. The firm must purchase lumpy assets to achieve the increase in sales.
Explanation:
EvenFlo Pipes needs to sell more pipes in order to see an increase in sales. Assuming they are the producers, they will need to produce more pipes than they have been doing and this will need them to increase their production capacity.
To do so they would have to invest in fixed assets as these are what produce pipes. This is why the firm will have to purchase lumpy assets that will help them produce and sell more pipes.
Answer:
a) Marginal cost of waiting is greater than the marginal benefit of being served
Explanation:
For an economic perspective, customer leave a fast food restaurant as they find the marginal cost of waiting is higher than the cost of marginal benefit of being served at restaurant.
Marginal cost: In economics, it is a cost that is incurred for an additional unit of benefit received out of certain action or activity.
Marginal benefit: It is a benefit received for an additional unit of cost incurred during the activity taken place.
Therefore, customer have done analysis on the benefit of waiting in a queue for getting served at restaurant, which he found that marginal cost is greater than the marginal benefit of being served.
Answer:
Dr. Cr.
July 19
Cash $792
Discount expense $8
Account Receivable $800
Explanation:
The term 1/15, n/30 mean there is a discount of 1% is available on the sales value, if payment is made within 15 days of sale with credit term of 30 days.
The sale of $900 was made on July 10 and discount period is until July 25.
On July 12 goods amounting $100 was returned and now the amount due from the customer is $800 ( $900 - $100 ).
The payment made on July 19 is actually in the discount period and it is eligible for the discount as it is made before July 25.
Discount = Amount due x Discount rate
Discount = $800 x 1% = $8
$792 Cash received against the sale made on July 10 and discount $8 is expensed. Total of $800 is credited from the account receivable account to eliminate it.
Answer:
a. Asarta Inc. could pay the fishermen $8,500 and keep polluting
Explanation:
The fishermen sell the fish for $8,000 a year at local market.
Due to pollution emitted by company into stream, their catch is dwindling and also their income.
The company benefits from usage of stream to the tune of $4,000 a year. In such scenario, if company compensates the fishermen for any amount between $8,000 and $40,000 then, in that case, optimal solution to the problem can be achieved in absence of any other transaction cost as per the Coase Theorem.
Therefore, The Asarta Inc. could pay the fishermen $8,500 and keep polluting.
Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the banks add the entire $100 to reserves, the money supply increases, but if the bank lends out some of the $100, the money supply decreases.
